Law: Customs Act, 1969

Section: 81(2)

Customs Act (IV of 1969)--S. 81(2)---Passing of final assessment order by Additional Director Valuation during period extended at his proposal by Collector--Validity---Pre-requisites for such extension being existence of exceptional circumstances and recording thereof by Collector---Neither Director in his proposal had referred to exceptional circumstances nor Collector had recorded such circumstances for extending time---Factual premise for exercise of power to extend time in terms of S.81(2) of Customs Act, 1969 was non-existent---Impugned final order was set aside in circumstances. ORDER TASSADDUQ HUSSAIN JILLANI, J.----This order shall dispose of Civil Appeals Nos. 282 and 283 of 2010 as they have nexus and directed against the judgments vide which the learned High Court allowed respondents' Writ Petitions, set aside the final assessment order passed by the Deputy Collector of Customs dated 22-5-2006 on the ground that the same was time-barred and violative of the section 81(2) of the Customs Act, 1969. 2. Learned counsel for the appellants submitted that the learned High Court fell in error in not appreciating that the Collector was competent to extend the time for final assessment for a further period of 90 days and that the assessment was carried out during the extended period to which no exception could be taken. He further submitted that since respondents had wrongly declared the value of the imported items i.e. door locks, the appellant Authority had to carry out investigation which inter alia included seeking report from the manufacturers in China and that took time. He placed on record the order of the Collector of Customs dated 27-2-2006 whereby on the report received from the Additional Director Valuation, Karachi seeking extension of time, he extended the same to enable the Department to correctly determine the value of the goods imported. 3. Learned counsel for the respondents, on the other hand, submitted that there is no cavil to the proposition that the Collector could extend the time but the law has provided a cutup period of one year within which the final assessment had to be carried out and if the Collector wanted to extend the time, he…

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